Singapore Entrepreneurs

23 Jul, 2009

Personal Bankruptcy Proceedings in Singapore

Posted by: Singapore Entrepreneur In: Business in Singapore

THE BASICS
So long as you owe someone more than S$10,000, you can declare yourself a bankrupt if you have no means to pay up. Your creditor can also commence a bankruptcy proceeding against you.

Debt Repayment Scheme
An amendment has recently been attached to The Bankruptcy Act providing for a Debt Repayment Scheme and is applicable to all bankruptcy applications filed on or after 18 May 2009.

The scheme is designed to assist debtors who owe less than $100,000 to repay their debts over a fixed period of time and avoid being declared a bankrupt- which has legal repercussions (such as restricted travel overseas and ineligibility for trusteeship or directorship for a fixed period of time). However, if you are a sole proprietor, a partner of a firm or a partner in a limited liability partnership, then this scheme may not apply to you. You can voluntarily make arrangements with the creditor to avoid bankruptcy.

Bankruptcy Order Timeline
A person can be made a bankrupt approximately 4 to 6 weeks from the date of the issue of the bankruptcy originating summons.

Alternatives to Bankruptcy

(1) Private Arrangements
(2) The debtor may apply to the court to make a proposal for voluntary arrangements
(3) A creditor can seek recovery of a debt through a court order or judgement
(4) Alternative dispute resolution in court

For more details, please visit the Singapore Supreme Court website.

No Responses to "Personal Bankruptcy Proceedings in Singapore"

Comment Form


About

We occasionally go off-topic but this blog is mainly about doing business in Singapore & China for start-ups. From ideas & strategy to the nitty-gritty details that will affect your business (but no one tells you about them) we try to help any way we can.

Our Sponsors